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tv   Port Commission 61416  SFGTV  June 27, 2016 7:00am-9:31am PDT

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sure. >> madam secretary you want it call the roll please. sure roll call commissioner president adams commissioner woo ho item 2 approval of the minutes for the may 10, 2016, so moved second >> all in favor, say i.
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>> i. >> opposed? item 3 public comment on executive session. >> any public comment on executive session also known as item 4 executive session. >> motion - >> i move to reconvene in open session you so moved >> all in favor, say i. >> i. >> opposed? i move to not disclose anything discussions in closed session. >> we need a >> all in favor, say i. >> i. >> >> opposed? it passes par item 6 pledge of allegianllegiancegianceallegian allegiancer item 6 pledge of allegian allegiance.
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and to the republic for which it stands, one nation under god, indivisible, with liberty and justice for all. >> please be advised the ringing of and use of cell phones, phones, please be advised that the chair may order the removal from the meeting room of any person(s) responsible for the ringing or use of a cell phone, pager, or other similar sound-producing electronic devices. please be advised the member of the public has up to 3 minutes unless the comedians has adopted a short time any public comment on anything not listed on the jaubtd. >> any comment seeing and hearing none next item executive director's report good afternoon port commission commissioner and members of the public port staff hyperglycemia i'm eileen the intern port director the first to give an update on the fema flood a
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mapping process you replacement the informational item in march on may 24th the port and the city administrator's office held a meeting ♪ meeting the port i noticed all tenants of the meeting about thirty attended fema explained the mapping and insurance and presented the natural flood insurance program and reviewed the draft map and explained the implications of logically in a flood area the port staff presented and working with the city administrator office to file an appeal to the draft flood map we're perpetrating that for july and keep the port and the public informed on this process which is lead through the city administrator's office the second item i'd like to
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reminder every one of festivities on the 4th of july the port draws about one and 50 to 200 and 50 thousand people to the free event at the waterfront law school great place to celebrate the nation's independents and working with the partners with the sfmta and the police department to make sure that is enjoyable in past years pier 38 will provide a full day of fun with fist grade band and will perform at 9:30 the fireworks will be launched from the end of the membership pier and from 39 a free event we currently you all to come down to the waterfront and celebrate the next is a legislative update
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on ab 797 for seawall lot and i'd like to introduce our manager mr. brad benson to present >> good afternoon, commissioners. director of special projects brad following the presentation we made last month about state legislation that assembly member chow is sponsorship on behalf of the port related to develop at seawall lot 337 and pier 38 you have a brief update about the proposed amendment.
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>> okay. >> sorry for the delay so i want to summarize quickly what is in the legislation right now so this is legislation that we relates to the public trust and we have negotiate this legislation in prior legislation with the states lands commission essentially not collective legislation allows for commercial office and residential development for parks and lot 337 themendments are in the financial structure and be able to use the land value of the site to finance all the infrastructure that need to be built utility infrastructure and parks while we're waiting the officer o on the public finances to repay that loan we
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need the ability to do long term leases 75 years that stepped out into the future and a little piece of land we need to add to the site this all requires the state authorization and in the bill that pass the state assembly last month so the protective history we've had unanimous votes with the sdment on the assembly floor 9 next stop is lieutenant governor and finance actually in sacramento we don't expect controversy at that hearing we want to talk about briefly about amendments related to pier 48 and we've been talking with bcdc about those lvengz has to do with with the bcdc plans and policies essentially bcdc treats pier 48
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definitely than most of historic piers on the port property a 2000 planning process essentially there are two older bcdc rules that don't apply to other historic resources called the 50 percent if you redevelop a peer you have to move half of that or turn half of it into open space and water independent use restrictions that is a narrower use of under the list and pier 48 is published by mtc and it is listed as an in active meow bulk facility not used for freight for more than 3 years and essentially our goal is to
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working with bcdc as the protective to help us to fix those two issue that stand in the way of the restoration for pier 408 bcdc will have the mechanism under the plans as of july jungle 16 meeting ever bcdc in two days we'll be prerntd to the commission to agree with the proposal that staff port staff came up with and if so the state legislation will authorize bcdc to present a project to poa 48 consistent with the way they handle the pier projects and amending out those designations in the seaport plan we taken this proposal to our central waterfront advisory group on may 18th and got
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support for this proposal they requested that we deliver the large park plan for seawall lot 337 early in the project by the end of phase one the giants are looking that we are going to bcdc on the 16 and talked with on the special stakeholders like today and san francisco tomorrow and none raised an objection to this idea we'll keep you apprised what is happening with ab 2797. >> ben the next item is about the exploratorium the a i a committee on the environment has selected 2016 top 10 green project award winners that is prestige and recognized the
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project that exemplifies the architecture and design and enhanced the environment on may awards were awarded and a i a convention is philadelphia i'm proudly to announce we were one of the 10 honorees this is a museum that demonstrates the sustainability in its design and construction 9 building take advantage of the historic pier shed natural light and the 8 hundred foot long wore megawatt array the water of bay is used for cooling and heating steering wheels are used that be sustainable and durable to handle the climate that is certified policeman and close to reaching the goal isn't countries largest net zero energy museum in an model that is possible for a contemporary
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museum and proud and congratulate 6, 7, 8 on this accomplishment finally not finally i want to with a sad and heavy heart johnson the city's director of office of disabled passed away died from breast cancer and diagnosed only 3 months ago she had a big reach at the port and worked with our ashen engineering staff on all projects she worked at dbi and also seven years directed the office of disability and anyone that knew carla - sorry. >> knew her for being a
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detailed and very ma ticks carpenter when she was trying to improve the access for did disabled community they create a box 0 allow people with disabilities to reach the phone and other didn't see to communicate in an emergency and needs to bey created citywide the department of public works said we can do it but takes thirty minutes that those was not good on and off if you have carli worked in her garage to make sure it could be done quicker so we ask you close this meeting in her - sorry. >> okay the final comment is that we
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changed venues for july 12 we'll be holding our meeting at james r. herman terminal and that's all i have. >> thank you. any public comment on the executive director's report. >> seeing none, public comment is closed. madam secretary. >> item 9 b port commission report. >> commissioner kounalakis. >> nothing to report commissioner woo ho. >> nothing to report. >> just i want to echo the words of from the chairman of the board forbes with respect to carla one did alliance we touched so many lives i know i was stunned when i heard of her passing she always managed to solve problems whenever they came her way and offered advise
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to people and just a some of the finances said in exempting really a giant among so many and she stood at all literally and figuratively we looked up to and huge friends of ports and really loved the port more than that she loved san francisco and loved the city and touched so many lives i want to adjourn in her memory. >> commissioner vice president brandon. >> first of all, i want to thank commissioner woo ho for putting us in touch with secretary along with the director forbes and peter daily and mike and she wanted to see how we do things in the port of san francisco she was expressed they she shouldn't e spent many
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million dollars and wanted to know how conducive with a port commission and dog parks and parks she was expressed we took her out there the golden gate bridge and thank you commissioner woo ho for that context and congratulate the ambassador for being reappointed to the port commission thank you for being there and i'd like to have a moment of silence for the 49 dead victims in florida the 43 shot and they are families injured it is sad we live in a society that people what hate you because of your sexual orientation or age or pillow affiliation that is, we live in
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a fragile world and be like this and something can happen to every single one of us we americans know how much our froochl means people on a saturday night going out to have fun wouldn't know that was the last time they have life and backlash of the families at this time i want to have a moment of silence for their families and victims and for carla johnson. >> may they rest in peace madam secretary next item, please. >> may i add one thing thank you commissioner president adams we worked hard to make
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sure we have an open supportive and executive environment for everyone and certainly weren't to the lgbt community a group of us lgbt openly lgbt port commissioners formed the group for lgbt port commissioners and staff and that is now spread and adopted official organization within california association of port authority we certainly take that role and recognize how important for people to be open and welcoming of others i think that the tragedy this weekend shows what happened what support not for people that are different and the self-hatred results in the indescribable tragedies and more news coming out what happened we're finding
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out a lack of support for individuals may have been lgbt or at least issues there and so i want to thank all of our staff and employees and other commissioners for doing everything we can to support people and which afternoon orientation, religious difference and ethnic background that enables people to feel comfortable and not lash out this should be noted and a thank you to you our port family for recognizing those issues that support the port. >> thank you, madam secretary next item, please. >> with regards to this items on the consent calendar i'd like to call out item 10 separately to direct the told them ann a it is the award the contract for
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the urban incorporated to significant, llc 3 economic and systems incorporated for real estate commissioner hillis of services each time contract not to exceed $900,000 and next to award contracts to one o i m m engineers joint venture to the engineering consultants joint venture and 3 the a g s and four parsons our joint venture each contract not to exceed one million dollars plus so moved. >> second. >> is there any public comment on 10 a b or c. >> going once, going twice. >> we're not doing 10 c. >> okay 10 ab
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seeing none, public comment is closed. commissioner president adams i want to make a comment before we vote and i just wanted to say as a process as far as looking at want evaluation progress for the contract and some of them that worked with the port before which is good, i want to mention that the evaluation criteria i'm not sure whether i understood that if they had worked with the port we have a formal evaluation for the work they've performed before and that if this is the case it should be called out if not should be a category because otherwise, it seems like we're renewing the contracts based on experience they maybe qualified then we have had actual ratings before we enter those contracts on a regular basis i don't have any issue with the engineering or service contracts but would
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like the process to reflect that the previous perform at the port has been reviewed ♪ process >> and if it they've met the goals boris you want to come and speak to that issue. >> commissioners pull the item from consent and engage in the conversation. >> so moved. >> call the item >> all in favor, say i. >> i. >> opposed? okay. we pulled it okay. >> good afternoon commissioners boris the contract administrator in terms of using the past perform as evaluation we use that in the administrative code, however, legislation that was recently adopted by this board of supervisors to use the best value on construction contracts when we reviewed a proposal the
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evaluation panel and they don't use past performance or any relationships they have with the existing firm when scoring the proposal they are only to judge the proposal before them this is changing the board of supervisors adopted the legislation, in fact, next year we will be able to use past performance as criteria for construction contracts in chapter 6 contracts. >> i'll note we recognize your comments commissioner woo ho and in this regard and have been serving on the advisory group that is recommending the protective changes and represented the poster position to use the past performance. >> you said crosswalks cracks my question we have engineering and service contracts are they to be excluded. >> no. those that that is
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chapter 6 of the administrative code that includes construction and contracts. >> it is a good business practice you should know their experience and rating i i know we've come up with that issue as are 2 relates to some people with litigation with other departments not with us why consider doing business so i think i know many of the firms are on a renewable basis but obviously look at their performance and say they continue to meet our standards i agree with commissioner vice president brandon she wants another checkpoint. >> okay. >> other than that i don't have a problem looking at the resolutions in front of us. >> okay. >> colleagues all.
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>> all in favor, say i. >> i. >> of resolution 1623 and 24 say i. >> >> opposed? resolution 16 number 23 and 24 passes. >> item 10 request the approval for the takeover number 5 regarding the indemnity and new form for the support of operations at the 360 cargo terminal with the attachment a has been provided for our reference the following corrections to attachment a as follows: on page 2 at the bottom of the page item 270 over 7 meter rates should be 200 plus instead 285 on page 4 to close an open the open area this be $2.80 and close areas as stated.
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>> so moved. >> second. >> second. >> any public comment on 10 c going once, going twice. public comment is closed. colleagues. > all in favor, say i. > of resolution say i >> opposed? resolution passed madam secretary next item, please. >> informational presentation for the term sheet between the board and national park service for a 50 memorandum of understanding outlining the business firms for the island with the future concession by two a lease with the golden gate park located at piers 31 and 33 located and embarcadero good afternoon, commissioners rebecca from the planning and development before you to present this informational presentation on a memorandum of understanding as you may know poster staff has
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been negotiating with services and other amenity to alcatraz island we'll return in july for the endorsement this is an informational item only. >> to aid our consideration we'll be presenting the site and business terms you'll compare that a to elaborate i'll be joined at the platform with christine the superintendent of the golden gate and the ceo of the national con tomorrow joining me i'll complete the presentation at the next steps going forward. >> since 1972 ferry service to alcatraz is on port property and every 10 to 15 years a process that we engage in recommended by the first spot with the
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concession opportunity they contract with the concessioner subject to the ferry company securing a site aid the port has a lease that's what we've been doing for more than 40 years under the proposed framework we collaborate with mc s the collaboration is with a memorandum of understanding which explains each of parties roles and responsibility under the terms of agreement we're proposing the business terms the business terms and some of the other responsibility we enlighten ap s doing with the bidding and contracting with the ferry they've been doing and attached a lease negotiated at the time to that contract all of the concessioners that bid know the terms of the lease sing a song full of the hope that the present has brought us; up for a bid and similar process
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for the contingency selected retail and visitors center and operators at the site and literally negotiated the lease with mp s they'll attach it with their contract and other responsibilities that will be spelled out as we complete the mohcd with the requirements for the approach to the tenants from the mp s and the port will have the same voice with expectation under the mou the ports responsibility to excused the lease the selected ferry operator with the firm and a significant sum for the sub center pierce 31 and a half. >> currently at the site we have a cafe and pier 33 bulk head with the facility on the marginal on pier 31 and a half
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and office tenants in the pier 33 bulk head you'll see a lot more about this property process but were a quick overview the proposed process the movement of the food banks operations from 33 to 31 and 3 that will become in the bulk head area a large visitor entrance interpretative signage and also retail in that location and improvements to the public plaza where alcatraz visitors are cue up and learn more about alcatraz and a new berth in the water that facilitates mp s for cruise embarking on this site they're under development the main crew to the national park like fort barker and richmond
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and hear mr. more about that those are still underdevelopment. >> currently the way the port participates in revenue or - include percentage rents on ferry services at 7 and a half percent that includes the ticket and on board revenues like on board and drinks and retail at a get office rent and 7 and a half percentage on the food banks sites that's on land and envision going forward from the proposed mou two leases one with the ferry operator and provided ferry services with the ferries as well as retail and represent the office space on the third-story and wanted to note those terms are one to 15 years
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per federal contracting law that's the limitation on the lease terms we'll have the convert will operate the cafe for thirty years no limitations on that term that will help to facilitate the terms ross are the terms we want our input negotiated with the mp s staff and key analysis and other support from our consultant a reality firm and assisted by appraisal work by our consultants and that expertise the percentage rents are shown by each component and each component has an associated base rent consistent with the schedule for the different types of uses
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wanted to note the capitalized expenditures that are to the vision include more than $20 million of the $20 million the parties have agreed that $3.074 million is rent creditable meaning the utility work in addition in the pie chart the portion that state represents in addition the port will comment to invest $5 million in substantial structure a lot of repairs and needed to operate this site so shown hero are expected sort of stabled receive by 2020 i want to point out the tables are the ferry operations comprise to the first 3 has to do with with ferry operator 80
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percent of revenues for the site a note about this so you breakdown that 70 percent of 80 percent are based on the existing operations continuing to solicit and this park includes a new type of service run out of this site the other 20 percent are bans the cafe sales and the retail and office and please note that for rent credit that is noted will be paid back over a 4 year period we'll anticipate $3.3 milli $3.3 million and for 4 years a rent credit up to 4 hundred plus in year 5 did rent credit is completely paid back. >> over a thirty years period the proposed term sheet is projected to result in one and
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$40 million to the port under the current site revenue if we look at it, it is not fully occupied which means the numbers there is no park cruise and operation over thirty years is proenld to one and $30 million to the port and the net value of those two items over a thirty year period i'd like to turn now to mp s representatives if you want to come up and i'll come back to talk about the next steps. >> good afternoon thank you very much for the opportunity to be here port commission and commissioner president adams and intern executive order we appreciate the fact you and our staff worked tersely with the national parks to identify the options and opportunity we're happy for the opportunity to share with the public and get feedback from you on this
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proposal. >> for many years the national park services worked to identify a long term ferry site for people to trace island we've blocked for a site that has an important gateway to this national port site alcatraz more than one million people visit and provide a quality experience for those who decide not to go across the bay but stepson in the area of the embarcadero we believe this shares that been the missions of san francisco and the national golden gate recreational agency we seek to accomplish for the historic resources and visitors to the site and violation for the future we have found an important partner in the port of san francisco and we are really pleased with the opportunity to work directly with the port for the first time
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in the national parks service the proposal you, you heard reflect the vitally gateway before the waterfront and the historic waterfront and the culture scenic resources we believe this proposal is an opportunity to make vooifrt the waterfront and the designation beyond the waterfront a world-class experience and life longs experience a few specification a welcoming gateway will be centered between piers 31 and 32 in the historic district it is fashioned after the popular national park experiences that integrates in donor and outside and creates a diversify one acre park on the embarcadero assess to the waters edge and use of bay and open to the public and be an entirely car free ear with limited parking in the pier 31 shed
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this beautiful sites cack integrate talents and skills of 4 key parts the port of san francisco the national park service and the ferry transportation and the nonprofit golden gate parks as correct said we're joined by the president and ceo he'll address the contribution in a moment here at the margin screen the port and the contingency has a leading edge program with essential services to visitors including ticketing and public heating and gathering areas and educational displays and two ramps for the ferry the pier 33 bulk head graciously welcomes a public and provides park ranger contacts and interpretation and books and
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other materials are available combined with the exhibit with the parks museum collection flanking the pier 33 bulk head the pier 31 bubblehead will be home to food and beverages for visitors on the embarcadero and open to the general public part of our work over the last 34 months with the port staff is leon each other's mission and goal and learned how much we share in our public purposes an important relationship we share an incredible partner in the contingency they've helped us to evaluate our services to visitor and the conservatism mission and the historic sxhifrm i think the park will benefit. >> good afternoon, commissioners
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commission staff and members of the public the parks conservecy we're honored to have your support for piers 3, 31 and to our city a little bit about the parks sxheefrcy we've been serving visitors to san francisco and residents for about thirty years now and responsible for working with the parks service and other public agency at any iconic designations with the presidio and the golden gate bridge and lands end in the course of a year we reach about 5 million visitors at the park sites providing information and trespasser active exhibit and programs about 4 years ago we were tasked with revisiting with the golden gate bridge by building a new welcoming plaza and by openly a new welcome
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center the welcome center is open for 4 years and includes the type of museums and exhibit the visitors greeting and visitor information and interpretive retail that we over for landmark moving on this the same year to provide a quality visitor center along wiimprovin the park facility that includes again interpretative exhibits and retail experiences a cafe and welcoming information for park visitors so we're happy to serve as the visitors partners for the national service and at the alcatraz peer and a long experience with the alcatraz and an award-winning program as well as the museum store that was
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renovated about 4 years ago and won many wards for the alcatraz history we're considered a partner of port and value the incredible work you do on behalf of the city andy vitalities the waterfront and thank you very much. >> we've come a long way we're happy to hear our comments or questions open this term sheet if it is endorsed at your next meeting in july we'll take to the board of supervisors with the business terms and update the business group and continue negotiating the mou to service from the conservativecy and having conversation with other
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bcdc and the army corp of engineers and the lease low once it clears ceqa it will be brought back to the board of supervisors we're excited to partner with the mp s and determine the operators on the vision of this site and map to have a stable location for people to come to alcatraz we welcome our questions or comments. >> any public comment on 11 a i have no cards if you want to get up and speak please do. >> thank you so much commissioner president adams and ma'am, commissioners all look forward to our incredible staff i have the distinct honor of serving and a at the society and prior to that the regional
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director for the prevention it is truly been a pleasure to interact with the port and the sxheefrtcy for decades now my professional career i want to commend you on our remark partnering that will take the next steps the port and the national park service and the conservatorcy is working together a true testimony and an example to the rest of the united states and the world i'm here as a friend to the port and to the park service and the convertcy anything we can help as we move forward with the lease for 33 and pier 31 and continue the efforts of the incredible embarcadero historic
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district and knowing you a carefully well reviewed and truly will enhance a remarkable educational resources other alcatraz thank you for the opportunity to speak and best of luck. >> any more. . seeing none, public comment is closed. ambassador commissioner kounalakis >> well, i know we'll have a long string of congratulations they're no order this is such an important part of the profile of san francisco people come here from around the world to visit al traced and we have clearing a lot of great things in store for this community and folks come to town to go and visit alcatraz i'll looking forward to seeing the next iteration and the next profile of what the terminal
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will look like and i know that a lot of work went in on both sides to come to an agreement relative to how the by his side of the deal go forward i want to thank the national park services for working closely with the staff to make sure that everyone is compromised and we can now look forward to what comes next. >> commissioner woo ho. >> thank you. i also want to thank the national park service and staff i know we worked on that very, very hard and it took a long time to get this on the table with information and get the facts on the table how to come to an agreement a win-win for both sides we have a great term sheet that is a win-win so i think we're supportive the commission has gone over much details to reiterate anything in particular, the one question i
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did have is when this agreement is signed and since your obviously operating the ferry service today, if you can give us a feeling and the public to continue to operate aid improve the site at the same time and what will be the transition plans. >> chris teen our welcome to come up and augment this this is certainly a concern with the operations of the site with the construction is going on and it will be working with the national park service staff many are here to insure that the partition are continuing and the visitor experience is marginally impacted during that period. >> thank you, commissioners it is something we have begun conversations we know there are improvements that will come and phase those to make sure the access is available for survivalist it is be 3r5ur789 as we go introduce the construction
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and we're focusing on the 2019 to 2020 t to - it will take until 2000. >> a 3 year window as we talk about that 2019 to 200022 to marry everything is wrapped up. >> commissioner katz. >> i'll echo the thanks in particular i want to thank the port staff that worked hard on on extremely complex project not this at least of the terms but the public sentiment and the way it ended i'm pleased we've reached a point all of us are happy with the results but most importantly the public and visitors to san francisco will really benefit by improved experience so i want to thank the park services and park sxheefrtcy to figure out how to
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expand that experience it is something we all value and treasure here in the bay area i'm excited as we go forward and we've gone over many of the terms that are very well versed but it shows with some tenet. >> i want to thank the staff for coming together and bringing this wonderful proposal it will continue to help us with our mission of bringing in more people to the waterfront it is absolutely wonderful i have one question in the business terms in the presentation you have a list of business lines ferry service and retail and it has a 10 to 15 lease and the cafe has a thirty year lease again, our
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mou is a thirty year lease with two 10 year options cue explain the difference. >> good afternoon commissioner jay project manager thank you for 0 the question yes in the mou term is thirty years with two 10 year options as stated in the report the lease with the sxheefrcy for a thirty year term to coincide with the initial mou term that is in the term sheet commissioner. >> okay. >> you have. >> in the commemorationer lease it is who two leases one with the xhoevency it is short term a 10 to 15 year term for
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the selection process with the mp s contract agreement. >> so we have 3 leases. >> an mou and two leases were. >> with the national park service for thirty years. >> yes. >> two 10 year extensions and two leases one 10 to 15 years. >> correct. >> yes. >> let me explain the federal programs is it so so not obvious so we are limited the national park service is limited to the length of term with a concessioner by law - the thirty year memorandum will include two leases if they go 10 years it could be 3 but our dear friends in washington, d.c. helping us getting our leases 2,
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3, 410 or 15 year terms. >> who is responsible for paying the port. >> who is recognizable the two leasees park conservatorcy. >> so there was a lapse between leases. >> who would happen our tenant is on to month to month we're waiting for the time period for a new bid for another contracts the mou will be their responsibility not paying rent and not - their responsibility to put our lease on their contract and who ever is selected our direct relationship we'll be paid by the tenants and if any problem with the federal
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contracting perhaps we as aized term needs to be extended we'll anticipate a momentous while we're waiting for the concession conference to go forward that's a ferry service and the conservatorcy will be a thirty year lease with plenty of time to figure out the extension and you know the market. >> does that answer your question. >> i wanted to say to the staff rebecca and byron and jay great work and rebecca you've been here a few months how articulate so crystal clear lay it it out to me everyone can understand your clear i want to compliment you, you on that and glad the port hired you. >> (laughter). we are two >> this is kind of like the warriors and the chief administrative officer letters
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two folks are fighting to get the best deal for the port i thought want to thank the staff and a lot of things were thrown out and a lot of rhetoric but at the end of the day i think that is a good agreement and i support it and i commend both sides for standing their ground and doing everything we can i hope the one million visitors that you get the park service and over at alcatraz i hope we can get those to pier 27 that will add to maritime. >> an informational presentation for 2015-2016 a rent schedule special events.
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>> good afternoon, commissioners i'm jeffrey the ports at large manager here with an informational item on the upcoming proposed change to the 2016-2017 schedule the parking stall rates and a special event and zoning rates in 1993 the port commission designated the authority to the port director to execute the memorandum of understanding if those agreements met perimeters like the terminal lease leasing a lens 5 years and the tenant as
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i understand a boilerplate lease and rates are the minimum perimeter rents be perimeter rents their large part of our activity our work this year we executed one hundred leases smaller part of revenue stream i believe that is 95 percent of total real estate revenues percent of total real revenupercent of total real est revenues1 percent of total real revenues8 percent of total real revenues the real estate market has continued to increase do majority we are proposing to raise the perimeter rates listed approximately 85 percent and listed 62 we're proposing 43 increases the balance pardon me we'll keep
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the same and not requesting any decreases to any average increases 5 to 15 percent and note last year was 10 to 13 percent so we've had some pretty good increases in the last foe years as i said we've executed 101 property agreement 4 hundred plus annual revenues 5. $7 million those - this depicts the different categories of portfolio and the percentages the square footage amounts -
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rate setting methodology every year staff takes a few months ago to review the data and review the 12 months transactions and consultant with a third party consultant carrying and talked with the key tenants and from that, we propose changes to tie in our staff report what is exhibit a the monthly rates and kaiser marston i know with a wags our analysis we've been aggressive with our rates this year our industrial is 4 percent again, we have 62 rental rate
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categories we're proposing to raise in 43 or 85 percent of those categories the other categories on the rental are the rental perimeter rates the park we have about 4 hundred and 50 resale parking stalls port wide rented to support tenants the majority to support tenants we're proposing to race those ten to 16 across the board and zoning rates the special event rates were trying to be more aggressive a high demand for port property for special events we're increasing those and i will return to you on july 12, 2016, for approval and i'll be happy to answer any questions you may have. >> is there any public comment
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on 11 b i don't have any cards going once, going twice. public comment is closed. >> commissioner katz. >> thank you jeff. >> you're welcome. >> a nice presentation very calculate and concise terrific one question as we get through our class a ynlt include pier one in the class a. >> those are the designated authority we could you know there are tenant of ours we can include that is that a fair point again, we're trying to list market comparables. >> i understand i was wondering why that was left off a little bit of class a.
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>> we do (laughter) thank you very much is there anything that jumbled out at you that is significant in terms of the proposed increases. >> any surprise. >> the north waterfront we were surprised that class b increased overall greater than any other across the board we've kept pace this is the largest proposed increase kushl 375 per square feet and proposing to go to 425 per square feet. >> thank you. >> commissioner woo ho. >> thank you for the report and i can we go for this every year i'm not sure why i guess i understand your answering the questions of spend should be the
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within the perimeters i think from the port commission i'd like to know how all the rents are doing and where we are charging so we have a sense of how the portfolio whether it is designated to the executive director to make a decision or brought to the port commission that goes beyond the promoter we talked about mp s they were using the perimeter rents this gives us a chance to a appreciative for the total rents are charged and where the market is we get an update but out of this year two million square feet that are within the perimeter i think the total square footage that is under lease a much greater than; is that correct. >> that's correct. >> closer to what in terms of
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total claers lease square footage whether direct lease. >> we have one thousand acres of land you can count that count that 60 percent is leased okay. so we're only seeing a portion under that schedule. >> you're seeing the perimeter rents you know we reality revenue is about 86 percent of total port and we have perimeter rents and brown leases and retail so we certainly can provide you with reports showing the current rents of all of them. >> we wanted to see the golden picture the whole development and the other question i've raised in the past i think when we say we have class e or c in terms of quality of the building i guess how do we add in the
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difficult to price value of the location and view and when he ask our third party how they help us evaluate when is worthy eve the building is not of quality and tech happy san francisco industrial open space is valued more than i think in typical urban metropolis they're looking for fancy goody spaces the mower people feel is fosters creativity. >> i wish we had more of it we were able to do what we wanted and defer the buildings into office but under you know we're highly a regulated environmentalist. >> if i may the purpose of report to prepare you for approval of the perimeter rent schedule to allow to execute
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leases within that range under the designated authority what usual sxg for and the questions really relate to a portfolio we provided such report in the past and can do so it is timing actually, we, i'll suggest putting that in the forward calendar. >> the one question under the rents do we include a premium. >> we do list on the promoters the agricultural buildings hazard a window office 335 per square feet and $1.55 we have a similar schedule at 401 so, yes. >> that will be the higher-up you go and the better view. >> that's the market price.
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>> yes. it is yes. >> okay. thank you ambassador commissioner kounalakis. >> i have one question as you come up with those rent to you consult with reality brokers what is your methodology other than raising a percentage. >> we review all the commercial available data and all the broker challenges so we review that and prepare that to our past usually typically 12 months of transactions so we - the problem is somewhat of our art the problem with commercial available data and brokers he'll get the ask rate for the the contract you'll not 2k3we9 the few walk across the street and you rent an office you'll get a t noted if you ask for it typically
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i can paint the office and carpet those numbers unless you specifically know we do i don't know actually what those you know contract rates are so- yeah, that's what you can tell you it is a exhaust review we talk with the brokers and larger tenants to get a sense where the market is what their charging. >> okay. maybe i have one follow-up question that is that sense we it is public what the perimeter relents does that effect what the offices look like. >> the educated person will go on the website this is not a price list this is a designated authority to director forbes to
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execute leases you know it is a bit of art but, yeah - not helpful when the tenants know and can sunshine a bit of a disadvantage but our properties are highly sought after does that answer your question. >> thank you commissioner vice president brandon. >> yeah. thank you for a thorough report i'm happy to hear a low vacancy late and increasing revenues in all areas. >> particularly last year, i give that 501 was half entry and now zero empty. >> thank you. >> you're welcome. >> thank you jeff i think my fellow commissioners have said it and look forward to next time. >> madam secretary next item, please. >> item 10 c request the approval of the l were the port
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of san francisco and high parking joint venture for 321 bounded by the embarcadero and green street and a 3 year lease with 0 port options for the 3.24 surface parking or passport with the district attorney's office street and 3 intern parking at sea lot with vallejo street and embarcadero at brandon and c pier 29 and nature and embarcadero street. >> good afternoon jay senior project manager i'm joined by my analyst and also our exert liaison and so we're delighted to be here today to request your theoretician for lease one six 141 as right by the commission
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secretary i'll describe the financial terms of the lease and then i'll let bob get got joint venture first of all, remembered you the process to be here that started out roughly a i don't know to request the authorization for the request for a proposal an innovative approach to parking operators and a local business enterprise lbe and we went out tote marketplace and got 4 proposals we went through and scored those in march of this year we cack to the commission and requested our authorization to move on the joint venture agreement with sp plus and hyde park management here in the crowd and excited about that opportunity this is the history and the lease itself
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is i think really quite damages and - this is a $200,000 plus over the existing operation we have a great partnership and great financial opportunity here the actual terms of allows leasing is flexible it is not what i call a straightforward pleas leasing a 5 year term with seawall lot 21 with the exploratorium adversities and have a 3 year lease on a future site for the friends and kenwood investments for boutique hotel and the other lot 322 dash one is wonderful affordable housing project that is put in by the
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mayor's office of housing and then on the two shed lots on intern month to month so two base rents with a base rents of $73,000 a month or the ground of 56 percent of gross revenue less parking tax on the seawall lot 323 and 24 a 78 snous base rent or 46 percent the other 3 lots are intern that presents us with flexibility due to 9 changing nature of our waterfront property and so this lease provides us with that so for that that has been a challenge to put together and a partnering that is signed up on those terms that allows us to terminate or cancel those are a
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one and 88 days cancelation we have flexibility in the lease and in addition, we have a partner that is going to do the best property they'll put in revenue control stations and signage and clean up 9 lot and make them visitor friendly and in addition take on a project on behalf of port for roughly almost $200,000 for a led lighting project on the exploratorium lot and do think outside the box on our behalf to have a corresponding rent credit for the lease and so we also on top of have an operation plan that allows us really to be able to work with our partners closely on hours of operation and customer service and maintenance and repair and have
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a little bit of flexibility in there they have additional personnel and we can go forward and bring those additional help on one other components to make this truly a flexible lease we have up to an additional at our request require our partner hero to further improve are correct code visions up to one thousand dollars in total amount of improvements and, of course, a bonding credit given 24 month period so it is a very flexible lease a lot to digest i'm sorry to go through if rapidly i'm proud what we've done with this partnering and the flexibility we've negotiated i'm going to turn it over to to bob to talk about the venture framework. >> good afternoon,
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commissioners commissioner president adams and director my name is bob definitely an analyst with the reality division when the staff was negotiating the lease work with the joint venture partners on included ways to enhance the partnering ways to increase kwiblth and clear understanding of how they'll implement the mentorship and how to the exits will grow and to increase the number of viable entities that can work at the port to that end i visited this offices we met with them more than 5 times since the last meeting and watched them how
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their offices work and asked them to go back to their an individual leadership groups to determine was in which we can increase the equity or the base they can increase the equity the result were positive we came up with a framework that allows for one year revisiting and analysis of the previous year with the option of how to moderate how to enhance the partnering and some of this is based on how they operate but the framework allows for the increased equity and the port to sit down and look at they'll overall operation during the year as well as and it allows us to really investigate the mentorship is the small company role learning the skills is if getting the credit enhancement that a large company
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or a small company rather wants to grow wants to get and after my meetings i felt disappointed very, very comfortable the partnership will work well together in the offices know each other and bring different skill sets to the table i think this is the first step that the commission wanted to see us provide more opportunities across the board for small and local businesses we're pleased at the progress we know we have work to do but think we have a the framework to get this to push this forward in a positive way and i'm certainly available for questions thank you. >> motion be in outdoor. >> so moved. >> second. >> any public comment on this item? any public comment on this item? with that said public comment is
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closed. and ambassador commissioner kounalakis. >> well, i remember the presentation from last time it looks great i'm comfortable. >> commissioner woo ho. >> ditto i think that sounds like a lot of progress made and hopefully that also engaged dialogue it is good we asked you to sit down and the staff helped to mediate that we made all parties comfortable and the combination of business opportunity and development opportunity address i think we hope that our support is helping you in that venture going forward. >> commissioner katz. >> can i echo the same i appreciate all the work that the port staff put into this i think that once again i'm proud of the work the port does to go above
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and beyond to benefit all of our san francisco and in particular a program that i know we ran it through traits i'm pleased to hear the results show we did get what we wanted in that there is angle opportunity created for local business to get that experience and grow and expand we can use this as a model for further opportunity to use our ability to support local businesses in san francisco thank you. >> commissioner vice president brandon. >> i add a thanks to both companies for their participating and really showing that it can work and how is it works so i'm glad you came up to the mike you were certainly welcome to do. >> thank you so much for bringing this opportunity i know you work hard making this a
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reality thank you two for sticking with it and bringing this to us i wanted to thank s p plus for stepping up ♪ mentorship role and becoming a partner and bring the collaboration with high park management and in all of it increasing the revenue to the port >> which is the best part of it. >> so i wish you guys well and hope this really worked out and this is not the last of those opportunities coming before the commission thank you. >> thank you jay and bob very thorough and job well done this is one of the pilot programs and hope that is successful i echo commissioner vice president brandons words i hope that is not the last to build on this
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project we look forward to seeing you. >> on resolution number 1626. >> all in favor, say i. >> i. >> opposed? passes unanimous next item, please. >> item 12 a presentation and assessment of options of pierce 32 located between bryant and brandon street. >> good afternoon, commissioners intern director forbes and brad benson of port staff really here in a supporting role who the lead on this presentation about pier 30/32 has been the site of a lot of development negotiations in the past with the warriors commission requested and update from the staff about this staff and here to respond to that
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request staff has always working with a waterfront plan working group to update the waterfront plan and pier 30/32 is one of the most not able sites in the south beach area of the waterfront a great deal of community interest about this site might the port do with it in the future through the waterfront plan process this presentation is intended to look at when we said in the past and what we've learned and ann has worked with the finance staff to look at a number of public trust consistent options for the site with a financial feasibility analysis that will to the future land use planning a first step in lord to what can happen at pier 30/32 i'll dive
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in quickly. >> so starting with our key takeaways and dan will amplify at the end the presentation we know the piers are in poor condition there is some of the oldest piers on port property they're no historic sheds on pier 30/32 and therefore the public trust role limits the range of use unless the state legislation authorizes the flexibility which is done two times in the past the regulatory context at the site is very, very challenging we've learned a lot there are no the projects how difficult to get a project permit at this site our hope is this body of knowledge and the financial feasibility analysis will aid the waterfront plan working group in it's generations to come up with recommendations for
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the commission a bit of a model how we should look at all piers in the port as well this is a 13 acre sites at pier 30/32 just south of bay bridge it is a really striking location that is used from this site across the bay the piers were originally constructed in 1912 they were extended in 1926 and then the piers were connected in 1950 with a certain sunk in area to create truck loading opportunity to the piers the piers burned down in the 1980s unfortunately so i'll talk about pier use and condition starting with the use
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the site has been in the past used as a crews bertha site the last cruise visit was in 2012, the new international cruise terminal with pierce 27 and pier 35 provides adequate cruise capacity this better is east bertha national cancerous berth and used for fleet week with the berthing point of privilege housing unit been used for periodic special events the main use is parking use parking for giants games that is the primary use of this site i talked about earlier the condition the port engineering
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division through it's piers sub structure analysis working periodically go through the pier they've identified poor conditions we have exposed steel that is reinforcing the concrete that is deteriorating and the beams through the pier there are load restrictions that engineering has placed on portions of this site primarily over pier 32 but portions of pier thirty trucks cannot travel because of the result of poor conditions that condition is expected to deteriorate over time so those restrictions and restrictions on the use of pier will expand unless additional capital investment there have been 3 major developments at the bryant
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street pier the first, the america's cup and the warriors most recently bryant street pier projects was the ports effort on the waterfront plan to obtain that newly international cruise terminal and two berth facilities proposed along a mix of office and retail to make a financially feasible proposal the rfp was issued in 1999 because the negotiate started with the san francisco cruise terminal in 2000 was tied up to be a 3 phase project with the water motor vehicle on seawall lot thirty is the first phase and the only phase constructed to a due to high peer cost to the pier terminal we walked away from that they obtained state legislation authorizing the
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project with the b.c. project but no army corp of engineers for the project then we have the america's cup a lot of excitement around the team basis of the competitors the port authority involved their money with for the upside down and being repaid through future development rights during the america's cup there were a lot of improvements cruise terminal by a preponderance from a joint entitlement to the america's cup pier one and a half got removed and proton got approved the authority was looking up to $90 million in raised improvements to pier 30/32 those costs kept on creeping up
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through the due diligence of the site the long term development rights at this election location and other locations are not extended through ceqa ultimately the authority termed the new york city after the first successful board votes only the led da after that the city and port took on the costs including the $2 million involved in the area for safety improvements then we have the warriors project and it drew very strong positive and negative responses from people thought the earth was stunning and beautiful for this area the waterfront 09 people are concerned with heights and whether an arena was on appropriate issue we learned
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lessons with the warriors project they were going to build a new pier on top of the guest powering using the existing pier in the concrete form has to do with with the condition the load requirement for the arena and the need to adopt for sea level rise so they were rebuilding a new pier we learned it high profile projects benefit from the site selection whether people want to participate and early consumption with the partners are the key and actually learned that this army corp of engineers we're looking at permitting the now piles for the warriors project through the clean water act that brings if restrictions under the clean up water act under the tint use and whether it is feasible it caused a real problem for this project
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finally the neighborhood was clear transportation in this area of the waterfront is already difficult to people trying to get into the bay bridge so what will the port do about transportation for this site i want to summarize the regulatory context not going into detail the state lands that advised if there are number one trust uses there's a need for new state legislation that will probably be the case for future projects involving the land use process we've toubd talked about this the mixed use and bcdc wants to see feasible parks and they're concerned about a proposal to park two too many cars on the pier as part of long
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term development and mention the army of co-sponsor engineers and fema listed pier 30/32 in the draft street maps and port staff is preparing an appeal we'll see where that leads now i'd like to hand it off to dan to lead us into thinking about the future. >> thank you brad. >> don depend on with the ports development division good afternoon commissioner president adams and members of the commission and discern director forbes i'm cover a few site considerations on pier 30/32 revenue several use concepts and speak to the financial liability pier 30/32 could be configured in many ways that with many possible uses
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staff development a range of concepts in response to the commissions request and as brad mentioned for the waterfront update process what we set out to do is analysis a trust consistent uses could work on pier 30/32 and what public told you a project the first few slides are simple by important consideration we've heard from the public and know from our experience the one brad mentioned this is a valuable large ship berth it is naturally deepwater the public emphasize that we enjoy seeing them out there almost all options to look at how to continue to support this use on the piers as brad mentioned the use are important in this area and the views from the embarcadero briand street wharf and it leads
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from the pier itself across the bay it comes up in the review that were discussed another that earlier was reviewed seismically revised seawall is considered i don't need to go into that and sea level rise, of course, is a consideration of all projects another that up to this point in time we looked at as brad said we're considering the warriors are looking at 36 inches our over the life of their project we're anticipating 36 and those are not our numbers we're studying this we have incorporated a few options very simplified in all projects look at this issue and just very conceptually to
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accommodate that and incorporate that into the costs associated here the other second to build a higher wharf at this location raising the seawall we want to step out and have had to be so 36 inches and the existing pier will run into trouble in 2040 we're oozed this as any use will have to be considered a higher evaluation and another concept a floating pier in place of the existing pier you'll see that concept come forward at the fire station proposal what if we do something different we're looking at different concepts in
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all ranges that concept they've their bans idea of the members of the public previously mentioned as i go through please keep in mind none are an actual design or proposal but collects of ideas and analysis you few rules we applied we believe that all could be found in trust as brad mentioned the components sxheptsz respect the regulatory framework and provided public assess within the piers footprint this is because of regulatory environment and they consider the public's value and reviews to sea level rise we looked at construction costs operations expenses, revenues and financial analysis i'm so summarized peaks the first of those is to continue what we're doing today
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which is learning parking on to day basis and events and the park generates $77,000 a year the pier as limited use will be more limited in the future in our financial analysis we plugged in before one million dollars every 5 year increments to continue to use the pier about thirty years out give or take we expect the pier will not be useful for sea level rise conditions this is very good return it is 50 percent based on the revenue that comes the revenue is most from the parking use of events and those are important used for the program of the port what we do we've heard in the public many times it is removal of the pier
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to create a large open water continue piers 28 and 38 adds acre at a cost $40 million to remove that facility and the port will be out of seven hundred thousand a year in revenue there is an expense two ways associated with with that. >> then we start getting creative with different uses heard from the public what if we had a large open space a couple of ways this is a floating open space i lauded and again, the pier will have to be removed the costs associated and the seawall will no idea to be seismically streld additional raised to accommodate such a use a new fleet will be constructed we looked at the cost for the fire station and revenue will be
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very slightly do not because of open space use and construction costs will be high $450 million predictable financial outcome and also looked at this idea if we seismically strengthened the exit pier that comes at a much significantly less cost i think that is somewhere around one and $75 million and a lifespan the sea level rise pier is unusable in a period of time and continue to suffer deterioration and the lack of fixing i'm showing it a brief summary of that and another collection of uses all of those allow the bet at the end ththi
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the retail area for public assess will support a higher elevation the arena was done similar to the marina for revenue operating costs to half the size of each marina and construction is 200 and $50 million with a total capital cost of $445 million with the rainy-day funds from over and over uses not getting to cover the cost soefshd with that. >> we recognize many ways to organize those uses i've discussed with the berth and marina we broke down those into an analysis looking at a
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fleeting ship berth and the costs an event facilities similar to the pier 27 cruise terminal that has other ooze and looked at it doing a marina as a loan and what the cost of loan and the marina to dredge and the rain waters on all sides we looked at the separated outstanding alone costs adjacent to the embarcadero the result for the analysis under the individual uses financially supported themselves on in retail will coming in were close those uses are necessary to part of a larger project consistency we expect the commission and the public has more ideas hopefully, the analysis will help that in the future go back to the
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exclusions we starred with the pier is in poor condition and not only that didn't met anticipated sea level rise the public trust limited the possible use and the regulatory environment is challenging not in - it is challenging and this analysis was done for the waterfront other conclusions this is a site where location is very valuable and the locations figure something happens any dependent the extremely unique location than on some of the uses iefdz covered here and if that were to go forward it would require state legislation because one has to have the costs associated. another interesting part in the staff report the lease proposal lot 330 was a
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potential for greater tax staff recommended 9 founding should go to other port capital needs are a higher priority instead of the uses that have alternative transportation for locations those are our analysis at a very high-level and with - in the group today is meg open from the finance division and engineers in case answers come up thank you for your time. >> any public comment on 12 a pier 30/32 any. come to the mike, sir please. state your name for the record >> my name is paul just a question how would prop b
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entering play with any of the options thank you. >> broadway want to answer that. >> so the absurdity height that is permitted under city zone for the site is 40 feet staff can see any proposal higher than that someone proposed greater than than 40 feet it takes a permit to permit that higher height. >> okay. any more. ellen hit the mike please. i'm yes, ma'am lengthy thought i would add some remarks as in my role as co-chair the advisory committee because first of all, i just wanted to see that was a great report and the analysis of some ideas
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about those piers and the nca c during the golden warriors, of course, we wanted to emphasize to the public this is one of the foe remaining piers we're using docked ships some dredge noted but really is there is dope water there and we want to remind people of the value of the maritime for this pier however, we did go and have discussions with the supervisors, etc. at that time, saying if a arena went there or non-trust use went there or used that considered okay for non-trust purposes but some combination of such that there should be room for and in the
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design of any future use for the berthing of the draft ship i was amazed everywhere we went to discuss none which seem that was understanding or grasp how important that piers service the maritime and this is one of the deep draft issues i said to bring that up again as we look at the future uses i thought some of the options we'll have more discussions we'll be looking more uses but bring that up and make sure that everyone has that kind of historical context to the >> good afternoon. i'm alice rogers i served on a pier
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committee and we've been in contact with your port staff in the aftermath i feel that the report of giving fairly characters a lot of the the or all the input the port has received from the general public comment and we appreciate the thoughtfulness they processed the various ideas of our neighborhood it it unified money of us wants to is a see a broad ring range we all wanted to see it serve the port in the best way this is to respected the maritime position thank you. >> thank you alice any more comments seeing none, public comment is closed i'll start with commissioner woo ho she was the one that exerts the port. >> thank you, thank you
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investigated for this detailed report from brad and dan i think that you have demonstrate it's clear obviously from the public comment that you've gone above and beyond to make sure we've thought about this there is a long history you've related in the variation possibilities and yet i think that even with all the options presented it is still mirky in would paths to take they have consequences and impacts and costs and things so it is not an easy task on the other hand, i think that some of the public speakers mentioned it would be - we don't want to lose the pier and through it away but on the other hand, the other options have issues and consequences attached to them i guess the first step i think was taken today is to kickoff
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take vicinity of the input and i'm glad to hear the public thought we took their thoughts take into consideration and other thoughts for 9 waterfront advisory group about come up with a more thought i guess i'm digesting the option i'm not sure i have one opposite we should have but important for that dialogue we know that the intern use continues for a period of time we have a little bit of time if we try to look at this but i'm not sure we have made a decision this is a long-term future that requires a certain mulch the investment as a usage as today, i'm rabbleing i'm not sure until 9 digest where i think the next step
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should be it is the first step we feed to continue to have lots of dialogue with various groups to see if this is a clarity how we protect the waterfront and the interests of everybody is sounds like whatever we choices it will be a controversial and hopefully, we can explain if we come to a conclusion we've chosen a wise path and taken out factors intoxication. >> thank you ambassador commissioner kounalakis. >> thank you commissioner president adams if i haven't in any first few months as a developer i'm going to do this this is a incredible, incredible development opportunities for that the city of san francisco that we have in our jurisdiction
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and i think that the grasp that staff shows graph the big idea proposal that has been coming out with increasing frequency as san francisco continues to buy out build out i think they'll come with greater frequency unless their say a point at the give up it seems it is impossible and so i put my developer hat on and think what did you do when you have a seat of this size that magnitude and potential with credible constraint as well and multiplied it is the duty of stakeholders how to - you can solve some of the constraint and
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the ones you can't but increase our flexibility and increase our livelihood you'll do something with that so as i look at the ones you listed outburst out i think he should start thinking about how we might be able to invest to move to remove some of the constraint whether sitting down with the army corp of engineers and i do know what that entails not through you know, i imagine the warriors consent but conversations we should have i also think that warrant a discussion on some level and commissioner president adams you know how this move forward i'll defer to you if there is a conversation to be had about the trust ooze and
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trust constraint and whether or not there is some kind of level of protective process to remove some of the shack eldest and give us flexibility even before we know what the final use might be when you're talking about the magnitude of the property and the potential relative to the portfolio of the city of san francisco i mean, i think that those confusions are probably warranted that's all. >> commissioner katz. >> thank you very much for the presentation as you may know i'm asking about this site for speak some time and appreciate the explanation of the floating pier not what i wanted to hear with respect to costs a couple of questions as
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commissioner kounalakis alluded to can you talk a little bit about the army corp designation and what that impact for the site means. >> sure so actually after the cruise terminal projects terminated i worked with leader pelosi that speaker pelosi's to get legislation for this waterfront in 2007 we thought exempted the pier from army co-sponsor permitting we have to north of the bay bridge that legislation was written a little bit definitely than the northern waterfront exemptions we received advise around 2010
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saying yes your exempted from getting permits for piles but not exempt from the water act under the 23407 legislation the army korea of engineers said you're not exempt from piles permit you need a permit regardless it is pile supported there their position we need to get permits and the permit process is easily if it is treated as piles you can have mixed use on the pier we have commissioner kounalakis started the dialogue with the army korea byron and i were in washington, d.c. earlier this year and opened this conversation with the core with the focus on the
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seawall and how the army co-sponsor will approach the pier we have a lot of questions how they were treated in the development at pier 30/32 we think there is new staff at the korea and might be open - that's a long-winded answer to your question about the army corp. >> then you know in terms of the cost and sort of lessons learned and one was the cost to develop the new pier under the san francisco golden state warriors but grew to over one and $65 million was that in part because of the weight load they were looking at or sort of a base case for any project comes
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on the site. >> certainly the arena is one and 20 feet at all required a number of piles under the arena portion of the powering that is unusual for the other potential uses that was an only figure all the sub structure they planned that was actually removing some of the existing powering that was open space costs on the pier that was substantial amount of space cost and seismically strengthening it as well and the cost were about higher than projected in part because the approach to sea level rise at the pier so we only had one and $20 million of resources to pay for that so the project was not passed as i thought the number went higher than one and 65.
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>> i'm talking about sub structure pier ointment talking about the full facility. >> i meant starting anothers 95 i know the one 20 but horde more closer to two hundred in addition to the billion dollars or whatever it was. >> the last number that was report to us at the staff level one and $65 million it would 36 they could have been carrying bigger numbers we have a cost and army corp a debate it was all 3 impounded to the bay site. >> in terms of the exploration
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did we look at some floating portion there's the middle portion that has been a bit more reinforced telethon the america's cup keeping some sort of a mix and match or was that even more feasible. >> in answer to what we looked at yes, we exhortplored - we ha sea level rise problem and potential to flood but the ports potential to maintain it so a different elevation presents although it looks a solution a bigger problem right there we looked at some of the options we showed we did two options a
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flooding floating and fixed pier option and gave you a few options they broke down the options if you rearranged those we tested the ship berth by itself and it didn't begin to pay for the cost within the floating structure we looked at an event center but get revenue use for special event we looked at the rates and getting the frequency at pier 27 as a model that got better but not paid for itself we looked at the retail of the wharf and the marina separately we tried to is okay. if you want to arrange those fine our construction costs our operating expense and revenues and arrange those and none of
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those are financial viable we couldn't put together any option each one the uses lost money none carried the cost of building a pier structure or the other float and bring in boats with the dredging costs below the powers or breakwater costs it is not - which brought us to the final exclusions that location is very big here and it may take a thinking beyond staff is looking trust and used for that. >> would a star wars museum perhaps (laughter.) . >> there actually was quite a bit of neighborhood support for that luke proposal which was credit card for pier 30/32 i just want to underscore the
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point we didn't look at non-trust uses that janitors more uses that requires the kickoff relieve you're referring to earlier commissioner kounalakis we thought that might be getting ahead of the planning process and the - but the results speak volumes about the need for some big idea maybe an idea where location is more important than cost. >> commissioner vice president brandon. >> dan thank you for that presentation it is hard to believe i was here for those 3 films. >> (laughter). and len lease was our second attempt to build a cruise terminal at pier 30/32 this pier has a long history but agency commissioner
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kounalakis said that is such an opportunity such a valuable site and i don't know. i hopefully some way we may be we can you know spent a lot of time doing our due diligence with the various government agencies to understand what it and isn't acceptable if we try to do something in the future maybe we can remove hurdles and barriers and get something done you you know with worth hundred of million dollars thank you, again, for the presentation >> brad and dan that's correct this is probably takes some billionaire by ego than anything else off the grid you're talking about the army corp and the berth and the ac d.c. you have
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the public a lot of out there theirs a lot of the land miensz a southern waterfront and the giants and pier 70 there's a lot of stuff as we think that takes somebody and that is something that would take a lot of work and a lot of components like a helicopter there's a lot of moving parts and i'd like to probably director forbes you said you want to say something i want to ask a minute of my time what are your thoughts. >> thank you for asking commissioner president adams that is an excellent conversation first of all, i think the comments from the commissioners been spot on in terms of understanding that constraint at that site and recommending that port staff
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explore ways to open potential revenue i agree that the land mines has a long history of landlines i believe that one of a kind location and it is credible piece of property so very, very expensive and staff has said a couple of times location has to manner are matter more than cost any development partner can't have a real hard stop related to time this is have been to be patient because of the regulatory conditions but i think this conversation wonderful and it is clear that the staff thank you for doing good work and good dialogue about this site. >> thank you very much madam secretary next item, please. >> item 12 informational presentation and the ports master lease pier 70 for the l,
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llc for the restoration of the building on or near 20th and illinois streets of pier 70.
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>> thank you for the help should i wait commissioner kounalakis. >> she's gone go ahead fill. >> good afternoon, commissioners phil senior project manager with the port staff here before you to provide a brief update on port and development posters inform rehabilitate the san francisco pier 70 historic core along 20th street in the shipyard area today's presentation you'll hear what is happening at the pier
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site since april of 2014 two years since you've seen an update we've accomplished quite a bit in the last two years. >> to define i'd like to first go over how this project meets several of the ports strategic plan opportunity goals the part of strategy plan and approved approved that and the projects are presented discuss how the project is meeting those important goals and this project meets the following goals of rushlg to the reuse of buildings engagement and meaningful public participation process that has been going on and continues you'll think or know about that the timely ability this brings jobs to the neighborhood take part in hiring candidates with
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local business enterprises and provided light manufacturing for businesses to grow and adds public space the project does a huge step forward in strengthening the conditions the resiliency part of plan and you'll know more about that and sustainability this project has a zero waste and that increases the sustainability of the site economic vitally is one of the goals and this project as you'll hearsay bringing maritime planners to the site to those measures that adds stability to the portfolio and increases private investment in the port and really adds to how portfolio to support whether the diversity
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of uses and now i'd like to update you to rehabilitate those structures i need to tell you that project is one of important tax credits this project must be with respect to the secretary of interior standard that means the project is repeatedly before the state historic preservation and the national park service to insure the design and the plans for the site meets the requirements and the team is also working closely with the port engineering and the department staff like the convention john sims that is the project manager who keeps the project moving and robert our building inspection is being responsive and timing in the site
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at this time, i'd like to introduce james madison to talk about the project schedule and the spaces and a status reports on the hiring commitment and finally a community engagement update that's correct phil and good afternoon, commissioners thank you for the opportunity to present it is exciting to be back with 4 years into the project and have the opportunity to actually report we're building and underway and we gone from the talking portion to the doing portion of the project which was very important as the buildings were falling down there are a number of pictures of the next couple of slides showing the work for a year nature like phil said we're in
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deep communication with the historic preservation commission office and the national park service and approved quite a bit of the work for the project and will continue to review smimentsz on a rolling basis for tenant improvements pictured on the slide is building one 04 the brick buildings on site which is undergoing a mandatory seismic upgrade at the opt row a number of windows that are restored they're almost all original wood blow the first row is the roar of the windows before they were fixed this is a picture of building one 13 and 14 about a year and a half going ago this is the windows being fixed we actually set up a window-shop opponent with 35 people that work directly with our company
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the carpenters union that perform tasks like window repair and who have successfully fixed about half of the windows omitted and will continue over the next year and a half with other scopes those are two general contractors working 0 the seismic work with with respect to work we have tenant that signed we do think that a lot of the work will be done towards the end of this year in a number of buildings with the first attendants leaving their doors first or second quarter of 2017 and hope to be done at the end of the 2017 believer 2018 we expect to innovative the public into the site pubically assessable sites negotiation and have the project fully 3078d
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with at least 5 hundred jobs by early 2018 one of the major components of the project is specific we're doing mandatory upgrades in addition to one 04 includes building one 13 the cyanide of the building one 13 a week's there is more steel in there now we're working 6 days a work and double shifts to small the steel is it so to the piles that go down
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